News Summary: Netflix adopts poison pill

News Summary: As Icahn buys in, Netflix enacts plan to protect against hostile takeover

Associated Press
A look at Netflix since stock plunged from peak
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FILE - In this Oct. 11, 2007 file photo, private equity investor Carl Icahn speaks at the World Business Forum in New York. On Monday, Nov. 5, 2012, Netflix announced it is moving to protect itself against hostile takeovers, less than a week after activist investor Carl Icahn disclosed that he has accumulated a stake of nearly 10 percent in the online video company. (AP Photo/Mark Lennihan, file)

THE PLAN: Netflix has adopted a shareholder rights plan, also known as a poison pill. Such a plan is designed to make it difficult or even impossible for someone to take over the company without an agreement from the board.

THE PROMPT: It comes less than a week after activist investor Carl Icahn disclosed a stake of nearly 10 percent in the online video company.

THE TRIGGER: Netflix says the provision is triggered if a person or group acquires 10 percent of Netflix, or 20 percent in the case of institutional investors, in a deal not approved by the board.

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